Labor figures claim taxpayers footing bill for factional chief
It can be revealed about 5300 of the Labor Party’s 16,000 Victorian memberships are paid in cash, including almost half in Premier Daniel Andrews’ Mulgrave seat. It come as Andrews’ plan to take over the Victorian Labor branch is set to face a court challenge.
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Unions are set to launch a court bid against the radical planned takeover of the Victorian Labor branch, as the scope of potentially shonky cash memberships is revealed for the first time.
The Herald Sun can reveal about 5300 of the Labor Party’s 16,000 Victorian memberships are paid in cash, including almost half in Premier Daniel Andrews’ Mulgrave seat.
Mr Andrews has called for an extraordinary takeover of the ALP state branch in a bid to weed out corruption within the party.
It followed the sacking of ex-minister Adem Somyurek and resignations of his Cabinet colleagues Marlene Kairouz and Robin Scott over the branch-stacking scandal that has rocked the government.
Mr Somyurek is accused of handing over thousands of dollars in cash and using parliamentary employees to create fake members to gain influence within the party.
Mr Andrews said on Wednesday sweeping reforms were needed to clear the party of non-genuine members.
ALP members are expected to sign their own membership forms and pay their fees by traceable means, with concerns about the difficulty of tracking cash payments.
The Victorian Liberal Party has banned cash payments for memberships, and a Labor source last night said the Labor Party needed to follow suit to stamp out branch-stacking.
The Herald Sun understands that of the 231 members registered in the Premier’s seat of Mulgrave, 100 had paid in cash.
But any effort to reform the branch through federal intervention could be in doubt amid a potential challenge set to be fought in the courts.
The challenge is being discussed by Victorian trade union secretaries. It would seek to test the powers of Labor’s national executive to intervene in state branches.
A recent Supreme Court judgment in a case brought by firebrand CFMEU boss John Setka — in response to federal Labor leader Anthony Albanese’s efforts to evict him from the ALP — is understood to have left the door open to the new legal challenge.
Under the intervention, Victoria’s members have lost voting rights until 2023, with the federal wing of the party to assume control over all party officials and staff.
The unions, which pay millions of dollars in affiliation fees to the ALP, are furious their rights have been suspended when there are no allegations against them.
The move is also understood to have angered many rank-and-file members.
Mr Andrews defended the bold plan.
“I’m about making the important decisions — whether they’re popular or not within my party, I’m not particularly fussed,” he said.
He apologised to grassroots members but said there was no alternative.
“I apologise for your pain. And I’ll guarantee you that when this reform work is finished, not only will your voice be heard, but it will be louder than it has ever been,” Mr Andrews said.
“There’s no democracy if you can’t have faith and trust in the voters’ roll. And I’ve come to the conclusion that that’s the position we’re in. I won’t settle for that. We need to clean this up. And we will.”
Defending the extraordinary three-year suspension of voting rights, Mr Andrews said it would take time to make the necessary reforms.
“You’ve got to break the business model for those who would seek to undermine the integrity of our systems,” he said. “And if we just have a pause for a few months, then we can’t be guaranteed that we’ll get the profound reform that we need.”
Former premier Steve Bracks and former federal deputy leader Jenny Macklin will take control of the branch.
Mr Bracks said reforming the party would be a “painful process” but would lead to better outcomes for members.
“There’s a cultural issue here which we need to change and have regard to in this review, and make sure that we look at the culture, which says that whatever it takes to get power is what you do,” he said.
Victoria’s anti-corruption watchdog yesterday confirmed an official probe, Operation Fortescue, into the branch-stacking scandal.
The parliament’s Upper House also voted to refer the behaviour of Mr Somyurek, Mr Scott and Ms Kairouz to the Victorian Ombudsman for investigation.
The Herald Sun revealed on Wednesday that momentum was growing for an investigation into the source of the covert recordings, which were made in Mr Byrne’s electorate office in Fountain Gate.
The Victorian Ombudsman had been asked to probe the conduct of the three fallen cabinet ministers embroiled in the government’s branch-stacking scandal.
The parliament’s Upper House on Wednesday voted to refer the behaviour of sacked minister Adem Somyurek and his factional allies Robin Scott and Marlene Kairouz to the Ombudsman.
It comes a day after the government in the Lower House rejected a motion to refer the matter.
Leader of the Opposition in the Upper House, David Davis said an investigation was needed amid shocking revelations engulfing the government.
“It’s important that the Ombudsman investigate these shocking revelations engulfing the Andrews Labor Government,” he said.
“Victorians deserve to know just how far the corruption in the Andrews Labor Government goes.”
Leader of the Government in the chamber Jaclyn Symes said the ombudsman may have to wait until the anti-corruption watchdog and Victoria Police finished any investigation.
The watchdog has confirmed it is investigating the state government’s branch-stacking corruption scandal.
The Independent Broad-based Anti-corruption Commission said on Wednesday it would investigate “serious allegations of corrupt conduct”.
The probe, Operation Fortescue, will examine a range of matters concerning allegations of ‘branch stacking’, and other matters and complaints made to IBAC.
IBAC has called for anyone with information they deem relevant to the investigation to visit www.ibac.vic.gov.au/reporting-corruption.
BRACKS AND MACKLIN TAKE CONTROL OF BRANCH
Former premier Stave Bracks and ex-deputy Federal leader Jenny Macklin will take control of the branch as a full audit of every Victorian Labor member is conducted.
Mr Andrews requested the reform plan.
“I’m about making the important decisions, whether they’re popular or not within my party I’m not particularly fussed,” he said.
The move is understood to have angered many rank and file members who view it as a factional takeover by a federal branch.
“I apologise for your pain. And I’ll guarantee you that when this reform work is finished, not only will your voice be heard, but it will be louder than it has ever been,” Mr Andrews said.
“There’s no democracy, if you can’t have faith and trust in the voters roll. And I’ve come to the conclusion that that’s the position we’re in. I won’t settle for that. We need to clean this up. And we will.
“We have to make sure that the only people who present to join our party and therefore get a vote are people who are consenting and genuine in their willingness and a desire to be a member of the party and are self funded in paying the fees that are a part of becoming a member,” he said.
Defending the extraordinary three-year suspension of members’ voting rights, Mr Andrews said it would take time to make the necessary reforms.
“You’ve got to break the business model for those who would seek to undermine the integrity of our systems,” he said.
“And if we just have a pause for a few months, then I can’t be guaranteed, we can’t be guaranteed that we’ll get the profound reform that we need.”
In a letter to the executive, Mr Andrews said he had “no confidence in the integrity of any voting rolls” produced in Victoria.
Mr Andrews is facing scrutiny for failing to know about the allegations of branch stacking within his party until they were aired on television.
The Victorian Opposition will make a second attempt to have the explosive allegations against the now-former Labor ministers investigated by the state’s ombudsman.
Upper House Liberal MP David Davis has confirmed the party will move a motion on Wednesday morning to refer the matter to the ombudsman, after a failed attempt in the lower house on Tuesday.
“In the case of the government, I say if you’ve got nothing to hide, you should have nothing to fear, and the ombudsman should look at this,” Mr Davis told reporters.
Two crossbenchers — Fiona Patten and Andy Meddick — have already indicated their support for the motion.
It comes as the Electrical Trades Union has jumped to supoort Premier Daniel Andrews’ Socialist Left faction.
The move is unlikely to upset the balance of power within the party, with the alliance between the Industrial Left and right-aligned factions still holding more numbers within the Victorian branch of the party.
But the decision to jump to the Left on Wednesday surprised senior figures within Labor as other unions prepare for a legal challenge to federal intervention.
The ETU is understood to have significant financial resources at its disposal.
CLAIMS THAT TAXPAYERS FOOTED BILL FOR FACTIONAL CHIEF
Labor figures have alleged Premier Daniel Andrews’ Socialist Left faction has used taxpayer resources to pay for a factional boss who spends his time increasing the group’s power within the party.
Mat Hilakari, whose role as convener of the faction is believed by several Labor sources to be a full-time job, divides his time between federal and state taxpayer payrolls.
He works for Mental Health Minister Martin Foley and as an adviser to federal MPs Julian Hill in Bruce and Peta Murphy in Dunkley.
Despite working for the two federal MPs, a Canberra source said he did not appear in the federal caucus directory.
Senior Labor sources said he regularly attended factional meetings and briefed politicians on Spring St as the Socialist Left convener.
Sources said Mr Hilakari frequently gave these MPs updates about preselections and deadlines for the renewal of party memberships.
One Labor MP said he also discussed recruitment.
During sitting weeks he is frequently seen at Parliament House discussing internal party business.
Former assistant treasurer Robin Scott resigned on Monday after his staff were allegedly caught by wide-ranging branch-stacking allegations.
In 2016, former senator Stephen Conroy hit back publicly at the Socialist Left as the party debated branch-stacking at a state conference. He told Mr Hilakari to “look in the mirror” and argued the party’s Left-wing had organised stacking activities over time.
Questions have also been raised about Cameron Warasta, a part-time staffer for Attorney-General Jill Hennessy.
Earlier this year, Mr Warasta was seen at a raucous factional meeting at controversial figure Jasvinder Sidhu’s home that erupted in violence.
Mr Sidhu, who was recorded making racist rants, was this month found guilty by Labor’s internal disputes panel of branch-stacking and inciting ethnic resentment for political purposes.
He was banned from running for office for the party but is expected to appeal the decision and may take his case to the party’s federal wing.
“Mr Warasta is a part-time employee of Ms Hennessy’s electorate office and has acted appropriately at all times,” a spokeswoman said.
The revelation comes days after the party was rocked by branch-stacking allegations, with three ministers exiting Cabinet and an extraordinary federal intervention into Victorian Labor. Opposition leader Michael O’Brien on Tuesday suggested more trouble for Mr Andrews’ cabinet, warning Mental Health Minister Martin Foley: “You could be number four” — referring to the three Cabinet ministers forced out of the ministry this week.
Mr Foley was quizzed about the conduct of his own ministerial staff, the Opposition leader singling out Mr Hilakari as Mr Foley’s staffer.
Asked if Mr Hilakari had been involved in branch-stacking from the minister's office, Mr Foley said he expected all staff to act appropriately.
Premier Daniel Andrews told parliament he expected no other ministers or staff were involved in branch-stacking.
“I look forward to getting on and doing the things that we need to do,” Mr Andrews said.
“You’ve got a series of issues that have been put forward.
“They have all of them in their totality been referred to IBAC and Victoria Police.
“That’s at arm’s length from the Victorian government.”
Plain-clothed officials were seen at Mr Somyurek’s home on Tuesday carrying folders.
A man and woman were initially denied entry to his home after repeatedly knocking at the front door. They returned to the property about 1pm and were ushered inside.
Mr Somyurek was not at parliament on Tuesday, despite the scandal surrounding his dismissal dominating debate.
INQUIRY CALL REJECTED AFTER KAIROUZ QUITS
The Victorian Labor government has voted down a move to establish an Ombudsman’s inquiry into its branch-stacking scandal that has forced the exit of three Cabinet ministers.
Opposition leader Michael O’Brien on Tuesday called for the inquiry, as well as an independent audit of all ministerial and electorate officer staff, amid suspicions of wider party corruption.
It came following the resignation of Marlene Kairouz, the former minister for consumer affairs, gaming and liquor regulation, who had resisted calls to step down.
Ms Kairouz and former assistant treasurer Robin Scott both resigned after being linked to disgraced MP Adem Somyurek, who was sacked after allegations of “industrial-scale branch-stacking” were exposed.
It has been alleged that staff of Ms Kairouz and Mr Scott were involved in Mr Somyurek’s suspected behaviour.
The allegations and the conduct of all three former ministers have been referred to the Independent Broad-based Anti-corruption Commission for investigations.
Announcing her resignation, Ms Kairouz said she was confident any investigation would clear her name.
“I no longer want these matters to be a distraction to the government,” she said.
“They have placed enormous pressure on my family and caused them great distress.
“I note that these matters do not relate to any allegations of criminality or corruption,” Ms Kairouz said.
Before her resignation, Premier Daniel Andrews said he had full confidence in Ms Kairouz.
“I’ve asked the minister whether she’s acted appropriately at all times; she has guaranteed me that she has,” he said on Monday.
Mr Andrews said it was not up to him to determine whether that was true.
“Victoria Police and IBAC, they will be the ultimate arbiters of whether their contention that they’ve done the right thing is an accurate one or not,” he said.
The Premier said both Ms Kairouz and Mr Scott had taken “the appropriate course of action”.
Mr Andrews said he was confident no other Cabinet ministers would be linked to the scandal.
Mr O’Brien called for an audit of all ministerial and electorate officer staff.
“Will the Premier today commit to sacking any taxpayer-funded ministerial and electorate staff who are shown to be conducting internal Labor Party activities within business hours, or does opposing this serious misconduct only extend to his internal factional opponents?” he said.
“Under his leadership the Labor Party has had a systematic pattern of using taxpayer-funded staff to improperly conduct internal Labor Party business — the printing rorts scandal, the red shirts rorts scandal and now industrial-scale branch-stacking from ministerial and electorate officers.”
CLEAN-OUT ICES VOTING
Victorian Labor members have lost their voting rights until after the next state and federal elections after Premier Daniel Andrews asked for an extraordinary intervention by the federal wing of the party.
Former premier Steve Bracks and ex-deputy federal leader Jenny Macklin will take control of the Victorian branch under the agreement, assuming control over all party officials and staff.
The change was on Tuesday night expected to be waved through by Labor’s National Executive as the fallout grows from secret recordings revealing offensive language and alleged branch- stacking.
The scandal has engulfed three Cabinet ministers.
Democratic structures within the party, including ballots and committees, will be suspended as
the pair conduct a review into its integrity.
“What an absolute joke,” former Liberal premier Jeff Kennett wrote on social media on Tuesday night. “Victorian ALP corrupt, and who do (they) put in charge to take control, two former ALP MPs. Steve Bracks and Jenny Macklin. Red Shirts, sold Victoria’s soul to the Chinese, now corruption.”
An initial report with recommendations for reform will be handed down by the end of July and is scheduled to be finalised by November.
The National Executive will also take control of all preselections for the next state and federal elections.
The reform plan was requested by Mr Andrews.
“I have no confidence in the integrity of any voting rolls that are produced for any internal elections in the Victorian branch,” he wrote in his request to Labor national secretary Paul Erickson, seen by the Herald Sun.
“Accordingly, we must suspend those elections and begin a long and critical process of validating each and every member of the Labor Party as genuine, consenting and self-funded.”
He said he would not accept “yet another review that, while well intentioned, cannot and will not deliver the profound reform that is required”.
The Premier also worked closely with federal Labor leader Anthony Albanese on the intervention.
Party officials are believed to have set the 2023 timeline so that any questionable memberships will have time to lapse.
“Daniel Andrews is determined to clean out any areas that are required,” Mr Albanese said.
“He’ll have the support of the national party to do that.”
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